what is withholding tax
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an amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of income tax.
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Withholding tax is income tax withheld from employee's wages and paid directly to the government by the employer, and the amount withheld is a credit against the income taxes the employee must pay during the year. It also is a tax levied on income (interest and dividends) from securities owned by a nonresident as well as other income paid to nonresidents of a country.
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